When you invest, you have to invest only in what has at least some scientific foundation, other than hope.
One of the pieces of advice that I usually give people is that, when they read a finance book, when they finish each chapter, write down on a piece of paper what seemed irrefutable to them in that chapter. If it’s not irrefutable, don’t write it down. Because if you fill your investment strategy with true and irrefutable ideas, you will feel much more sure of your method at all times.
antonio rico (@AntonioRRico) is the author of “El Inversor Inteligente”, one of the most well-known and respected stock market investment blogs in Spain, and since March 2018 the manager of Baelo Patrimonio, an investment fund that in just 8 months of life has a capital that exceeds 7 million euros.
Antonio has spent more than 15 years investing in the stock markets and for almost 10 years sharing his ideas, reflections and lessons learned on his blog, and he is responsible for thousands of people having improved their financial education and have begun to invest following a strategy that makes you feel good.
In our conversation, Antonio and I reviewed his evolution as an investor, from the purchase of his first shares to the birth of Baelo Patrimonio, and we talked about such interesting things as…
- The difference between investing and speculating
- How Antonio experienced the stock market crisis of 2008 and what he learned from it
- The irrefutable truths that have defined Antonio’s investment philosophy
- How to create a portfolio tailored to your personality and goals
- When to withdraw the money you have invested and how to do it correctly
I think you will love this episode whether you are already an investor or have been wanting to start investing for a long time. And if you have no idea about the stock market, don’t worry, Antonio explains everything in a very simple way and by listening to us you will learn all the basic concepts 🙂
Where to find Antonio:
Mentioned in the episode:
0:52 – Presentation of the guest
2:40 – Start of the interview
3:29 Why did you decide to be an airplane pilot?
5:30 – On one of your flights an engine caught fire while you were flying. How he reacted to him and how they are prepared in the pilot school for cases like these
8:41 – I had always thought about being a teacher. How you decided between a teacher and being a pilot
12:05 – What do you think now, 20 years later, of the decision to be a pilot and not a teacher?
2:10 p.m. – What was your first contact with the investment world?
17:23 – What was your first contact with the world of stock investment?
20:00 – Why did you decide to buy Telefónica shares?
20:38 – At what point did you start to take investing seriously and not as a hobby
23:28 – Why you opted for the stock market instead of real estate investment
12:54 p.m. – What is the difference between speculating and investing
28:39 – What was the mood in the investment community in the months before the markets crashed in 2008?
33:04 – Do you agree with the phrase “when you see even your neighbor’s son boast about how much he is earning with his speculations and even the taxi driver recommends what you should invest in, that is when things are ready to explode and you have to be careful”?
34:15 – How the stock market crash affected you, both psychologically and in the performance of your portfolio
37:32 – What did the experience of falling markets teach you?
41:48 – What strategies did you discover and integrate into your investment philosophy when you started researching?
45:02 – What is passive management
52:10 – What did you do after researching and learning new concepts and ways of investing?
54:42 – What are ETFs
56:31 – Why did you decide to start your blog and what do you intend to achieve with it?
59:31 – The turning point of your blog was a challenge called “52 books for 52 weeks”. What did the challenge consist of and why did she decide to start it?
1:02:36 – Of everything you learned with the challenge, what were the ideas that impacted you the most and that you still have in mind today?
1:06:46 – What type of enneagram personality is
1:07:43 – What three books would you recommend to someone who is starting out in the world of personal finance and investment?
1:14:39 – Why did you decide to do an Official Master in Stock Markets and what was the experience like?
1:17:51 – How you reacted when your four-year-old daughter was diagnosed with leukemia and how you moved on
1:21:36 – What changes did you make to your portfolio as a result of your daughter’s illness and why did you decide to do so?
1:23:11 – Differences between the Bogle Portfolio and the Permanent Portfolio
1:25:07 – How your daughter’s illness affected you on a personal level
1:27:07 – Advice for people who go through a situation similar to what Antonio went through with his daughter
1:27:56 – How did it occur to you to start managing an investment fund, how was it accepted by your readers?
1:32:50 – I wanted to create a fund that was for everyone, with a target return of 4% plus average inflation, passive management, diversification, low commissions and little volatility. What was the investment strategy you designed to meet those objectives?
1:37:51 – The equities portion of your fund, what type of companies you invest in
1:42:20 – Why you left out index funds in your fund
1:47:01 – Is a Dividend Aristocrats index fund better than one indexed to the SP500?
1:50:54 – Why did you decide to call your fund Baelo Patrimonio?
1:53:27 – How is the management and reception of Baelo Patrimonio going, how are the figures being and to what extent are the objectives being met?
1:58:11 – Baelo has a commission of 0.69%. Isn’t it high and goes against trying to keep commissions as low as possible?
2:02:05 – Does Antonio invest his money in the Baelo Patrimonio fund?
2:04:31 – Where to find more information about Baelo Patrimonio and how to invest
2:07:50 – Would you recommend everyone to invest in the stock market or do you think that certain requirements must be met before investing?
2:11:29 – Before investing, should I have a certain amount of money saved?
2:13:22 – Does investing always involve the risk of losing money?
2:15:14 – If you want to be able to withdraw your money whenever you want because you don’t know when you will need it, what should you do?
2:17:10 – Is it really important to train before investing? When are you ready to start?
2:21:26 – What investment strategy should you use if you are just starting out
2:24:33 – How to configure your portfolio to have the risk and return you seek
2:29:51 – A 5 or 10% return, isn’t that very little? Is it better to try to predict which companies are going to grow a lot?
2:33:41 – Do people who try to outperform the market succeed?
2:38:31 – Is it better to invest now that the markets are so high or to wait for them to go down?
2:42:52 – Which broker do you recommend to invest in Spain?
2:44:11 – When you can or should withdraw the money you have invested
2:45:58 – Recommendations to successfully deal with periods of falls
2:50:17 – How much capital must be accumulated to be able to live on your investments
2:55:55 – When you have accumulated enough capital to have financial freedom and live on your investments, how does it work for practical purposes?
2:58:20 – Future plans with Baelo Patrimonio
3:01:50 – Future plans for the blog “El Inversor Inteligente”
3:04:54 – What is the most important thing in life for Antonio
3:07:41 – Where to find Antonio and what to do if you want to invest in Baelo Patrimonio
3:08:47 – Farewell
(6 ratings, mean: 3.8)